Stock Market Wisdom - The Turtle And The Hare

Then, one day, the frustrated tortoise answered back: 'There is no denying that you are very aggressive in your investment strategy. You get high earnings and take very high risks. But even you may be b…

Once upon a time, there was a hare, a hotshot rabbit investor who would always talk to everyone that would listen and that he was the brightest, fastest, best performing investor on the planet. He would constantly tease the old turtle about his slow, reliable investment model.

Then, one day, the annoyed tortoise answered back: 'There's no denying that you're very aggressive in your investment strategy. To get one more way of interpreting this, we recommend you take a peep at: Luxury Apartments Vs Serviced Apartments - Take your choose, Option is yours. You take very high risks and get high returns. But even you can be beaten.'

The young hare squealed with laughter. 'Beaten? By whom? Certainly perhaps not by you. I bet there is nobody on earth that could win against me, because I'm therefore good. If you believe that you can beat me, why don't you try'?

Provoked by such bragging, the tortoise accepted the challenge. Each of them set an equal sum of money in-to a new account and the battle was on. Since the meek tortoise trudged slowly down the hare yawned sleepily. Dig up more on this related website by clicking sex toy rabbit.

The tortoise committed to premium quality blue chips, companies with household names, as could be expected.

The hare, as expected, used his money in dot-com stocks and options.

You know the story. The hare jumped out to a large early lead. In a rising market, the greatest risk stocks perform the best. This is called momentum investing. To study additional info, we know people check out: visit site. Money flows in to the investments which can be performing the best.

The hare, having got out to such a sizable early lead, stopped watching the market environment. Generally, h-e fell asleep. He thought to himself, 'I'll have 4-0 winks and still remain way in front of that ridiculous old turtle.'

The hare awoke from his rest and gazed around looking for the tortoise, who had been nowhere in sight. However, while he was sleeping, dreaming about what he'd do with his profits, industry turned against him. Discover more on this partner essay by browsing to view site.

His very high-risk account had taken a dreadful beating and was now virtually worthless.

The sleeping rabbit had been passed by the tortoise, a Warren Buffett style investor, way back when. He had been plodding forward, steadily, because the start of match. The Tortoise never for an instant stopped, but continued with a slow but steady pace directly to the end of the course.

The hare understood the tortoise was way ahead of him, and away he dashed. He leaped and bounded while gasping for breath, nonetheless it was too late. He had been beaten by the tortoise.

You can find two essential lessons to be learned here.

First slow and steady wins the battle.

2nd never confuse your own intelligence with a bull market..